Options Playbook Radio

Today we are discussing a fig leaf or leveraged covered call in CSX after earnings.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com

Direct download: Options_Playbook_256_final.mp3
Category:general -- posted at: 9:57am CDT

With it being in the news a lot lately, let's take a look at a diagonal call spread in Boeing before their earnings reported on April 24.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com

Direct download: Options_Playbook_255_final.mp3
Category:general -- posted at: 9:12am CDT

THE HUDDLE

Question from Harold Dsouza -  Hi Brian. Let me start off by saying I am a big fan of your options playbook radio podcasts. I think you are an excellent teacher. I have been meaning to reach out to you for a long time now. I am 41 yrs old and have been very intrigued by the stock market since I was a kid. I have also had an innate fear of losing my hard earned money which has kept me away from venturing into the market all these years. I have finally overcome my fear and have decided to slowly wade towards the deep end. I have been educating myself for about 4 months now, getting comfortable with the market terminology and its workings. I've been reading books on stocks & options trading and listening to podcasts. Absorbing as much as I can. I have had a financial advisor  who has been handling my portfolio for the past 6 yrs and honestly I have seen very little gain in my accounts over these years. After listening to your podcasts I am motivated and I believe with the right guidance and education everything is achievable. I have decided to take control of my finances. I have been listening to your podcasts starting from day 1 and listened to them over and over again until i understand the concept. Some of them i'm struggling with, but i am determined to get there. I like the way you break it down into bite sized digestible chunks. My money has been sitting in my trading account for over 3 weeks now. I am a little anxious to take the first step which is picking the right stock. I am still conservative with my money. Hence I am looking primarily at DJI & S&P500 stocks. My focus at this point is to pick right stock that is on it's way up and sell covered calls on those stocks taking advantage of the current market rally while as the same time getting some residual income. Once I am comfortable I will be looking at handling my finances in its entirety.

I need some guidance on how to pick those stocks. I am reaching out with the hope that you could provide some guidance or point me in the right direction to help me get started and achieve my goal. I am currently on podcast # 32, I don't know if you have covered this in your later podcasts. I don't know if my approach is right. I am just going with my understanding of what I have been reading and observing and listening. Much like a well read frog in a well..lol. Look forward to hearing from you. Best Regards, Harold

Question from Joe and Linda - I have  been knee deep with you guys for the last 14 months and can’t thank you enough for the wealth of information you provide. One of my favorite quotes: “ Your generosity is only exceeded by my gratitude.” I have a long commute to work in the morning and have managed to listen to all 240+ of the Options Playbook, all of the Bootcamp, 90% of the OIC stuff as well as in and out of the Options Advisor and Futures show. Also haven’t missed Options Block for the last few months… I have a few questions:
- I purchased Dan’s Trading Options Greeks book and was wondering if he had an audio version. Could easily listen to it on my morning commute.
- I seem comfortable with Bollinger Bands, ADX Charts and Volatility Charts, but I am having trouble nailing down a consistent time frame. Should I set the chart for the time I am interested trading or is the 6 month better, 1 year, 2 year....?
- Should support and resistance lines reflect 100 lines for better accuracy? 250? Thank You so much for all your help, looking forward to the future with you guys. Going to be successful enough to be able to travel Thank You guys in person! Thanks Again!
Question from Jarryd Smith - I have a question for the podcast. What is meant by 'the tent'? For example, stop the trade when it exits 'the tent'. Let's use an ATM Butterfly. Is it the ending 'tent', when at the end of the trade it would a max-loss? Or the end of the trade that would still be a profit? Or something else? For example, if I had a 100/150/200 ATM Butterfly on for $25, would I exit if it hit 100 or 200? Or 125/175? Or something else? Thanks!

Question from Thomas Weber - If I am short a deep in the money call in SPY (delta near 1), what are the odds I will be assigned the Thursday night before Friday expiration?

 

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com

Direct download: Options_Playbook_254_final.mp3
Category:general -- posted at: 7:44am CDT

Let's take a look at our Nexstar fig leaf trade from last week. Then let's discuss an out of the money long call spread on Boeing.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com

Direct download: Options_Playbook_253_final.mp3
Category:general -- posted at: 8:17am CDT

On today's episode, we use a figure leaf or leveraged covered call in Nexstar Media (NXST).  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

 

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com

Direct download: Options_Playbook_252_final.mp3
Category:general -- posted at: 8:21am CDT

Comment from Analog K71 - Hi Brian! I know that you are not making recommendations, but your diagonal spread on Pepsi was a perfect call! The short call expires almost perfectly with the underlying stock at 1.16, now my long calls are entirely risk free and possibly worth something! Just wanted to give you a tip of the hat! Thank you
Question from Da Poet - What does it mean when an options is delta skewed?
Question from Holscreen -
Is it safe to say that a large amount of the options business is devoted to paying for puts?
Question from Duffy - How do you handle the fixed-time aspect of trading options?
Question from Stipe 3 - Is it safe to say that most professional option traders are short premium and long theta?
Question from Merrick - Can I have a copy of the playbook? Also does Brian do any live events?

Direct download: Options_Playbook_251_final.mp3
Category:general -- posted at: 7:07am CDT

Direct download: Options_Playbook_250_final.mp3
Category:general -- posted at: 9:20am CDT

 
First we look at recent trades in Pepsi and Nvidia.  Then on today's episode, we use a diagonal spread in Costco.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 
 
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.  
Direct download: Options_Playbook_249_final.mp3
Category:general -- posted at: 9:03am CDT

THE HUDDLE

Comment from Georgi - Hi Brian, Thanks a lot for taking the time and elaborate on my question about OTM Calls, on Jan 17 on Options Playbook Radio! You guys are doing a great job! I have been listening to you for a while and I am very pleased with the content and the way you present it. I enjoyed how you tried to pronounce my Yahoo nickname "joro joro ". My name, in fact, it is Georgi or George in English. Cheers,Georgi G.

Question from Dave B. - Hi, I have a question about what is the best strategy to use for my trading system. I typically am only right on about three or four trades out of every 10 with long stock. The trades that I am wrong on, I take a small loss - somewhere between 5 to 10% but only 1-2% of the total capital as I typically take 10% positions. The trades that I am right on, I typically make 50% up to 200% over a 3 to 12 month period. I want to find an options strategy to increase returns via leverage, but keep total portfolio risk per trade about the same. Would DITM calls or spreads make sense to you?  Or is there another strategy I could (should) consider. Thank you! Dave B.

Question from T Whitaker - I like all of Brian’s earnings strategy episodes of options playbook. It seems like Brian prefers to use skip strike butterflies whenever trading around earnings. But are there ever times when he will utilize other strategies around earnings - maybe straight long/short calls or puts when he feels there is an edge? Good show and loving the playbook website as an addendum.

Question from Leg77 - MIAX making it official with 16 exchanges. What do you guys think about more players entering the options game?

Question from LaCrute2 - Funded my Ally options account and I’m enjoying the options playbook program. Thinking about picking up the book as well. We need to have Brian and Mark do a regular show for the Ally options folks that we can listen to while we’re trading.

Direct download: Options_Playbook_248_final.mp3
Category:general -- posted at: 8:27am CDT

We start the show by reviewing the performance of our Pepsico Earnings diagonal spread from last show. This week we breakdown a bullish Christmas Tree Butterfly in NVDA going into earnings. With NVDA at $152.88 Brian wants to buy 1 Feb15 165 Call, Sell 3 Feb15 167.50 Calls and then Buy 2 Feb15 170 Calls for a net credit of $.20
Direct download: Options_Playbook_247_final.mp3
Category:general -- posted at: 10:21am CDT

Today Brian breaks down a diagonal spread around PepsiCo (PEP) earnings. Tune in to learn how you can implement a similar strategy into your own options trading.  As always, if you have any questions or suggestions for future episodes of Options Playbook Radio please send them to TheOptionsGuy@AllyInvest.com
Direct download: Options_Playbook_246_final.mp3
Category:general -- posted at: 9:35am CDT

Today we will be using a skip strike butterfly in Amazon.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 
 
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com
Direct download: Options_Playbook_245_final.mp3
Category:general -- posted at: 10:23am CDT

TESLA SKIP STRIKE CALL FLY

  • Host: Brian Overby, Senior Options Analyst - AKA The Options Guy - at Ally Invest

If you like to trade volatile stocks then TSLA has you covered. Today we're going to trade a Skip Strike Call Butterfly using Tesla options. This is an advanced play so make sure you've reviewed the Options Playbook before proceeding. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, and on the Amazon Kindle edition.

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OPR_244_-_TSLA_Skip_Strike_Fly.mp3
Category:business -- posted at: 7:50pm CDT

Options Playbook Radio 243: Huddling Up About Premium Harvesting and Covered Calls

Today Mark and Brian  answer questions about

  • How to safely harvest premium in a volatile environment by selling puts
  • What criteria should you evaluate when constructing a covered call portfolio?
Direct download: OPR_HUDDLE_2_1-9-19_FINAL.mp3
Category:business -- posted at: 11:10pm CDT

Options Playbook Radio 242: Huddling Up About Expiration, Calls vs. Spreads and More

  • Host: Mark Longo, Founder and CEO - The Options Insider Media Group
  • Co-Host: Brian Overby, Senior Options Analyst - Ally Invest

In this episode Brian and Mark huddle up to answer the following questions:

  • QUESTION FROM Paul Vasquez: When is the “official” close as far as options expiration is concerned? I’ve had calls assigned and had stocks put to me when the strike was out of the money at market close but it moved in and out during after hours trading. Any light you can shed on how expirations work would be appreciated. Thanks Paul, Sacramento, CA

  • QUESTION FROM B0R1NG: When do you just buy a call vs a spread? Is that ever the preferable option?

  • QUESTION FROM COS7MNT: What’s the ideal time frame for trading options? Mostly short-term?

 

 

Direct download: OPR_HUDDLE_1-9-19_FINAL.mp3
Category:financial podcast -- posted at: 8:26pm CDT

Huddle up, listeners! We're taking your questions, including:

  • The options question of the week: What is the largest open options position in AAPL right now?
  • Given the skew set up in equities, why would you ever buy a collar?
  • Why are there no options on VXAPL?
  • Will we ever have a VIX index product that you can actually buy/sell?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio241.mp3
Category:general -- posted at: 9:00am CDT

Huddle up, listeners! We're taking your questions, including:

  • I've been lured in by the ongoing selloff in crude and have been thinking about a stock replacement in USO. Should I even bother? Is there a price where it's no longer worth it? What about timing? And more....
  • Does Ally allow people to close short positions below 10 cents without a fee?
  • Are there any types of trades that, without brokerage fees, would be great trades?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio240.mp3
Category:general -- posted at: 11:11am CDT

Now that the Fed has spoken, the market is reacting. This is a good opportunity for a front spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • The Fed has spoken
  • What's a front spread?
  • Using AAPL as an example
  • Where is APPL now?
  • Selecting strikes
  • Selecting an expiration date
  • Max risk and max gain

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio239.mp3
Category:general -- posted at: 11:50am CDT

When the market conditions are right, it can be a good time to trade a butterfly in the S&P 500. Now is the time. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • As of this recording, the VIX is higher than last week, but down a bit on the day
  • A review of last week
  • Where is the market now?
  • Let's do another 20-point wide butterfly
  • Selecting strikes
  • What does it cost?
  • What's the maximum gain?
  • What about the hedge?
  • And more...

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio238.mp3
Category:general -- posted at: 12:14pm CDT

When the market conditions are right, it can be a good time to trade a butterfly in the S&P 500. Now is the time. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Where is the S&P 500 index right now?
  • Buying a December 7 butterfly
  • Selecting strikes
  • What is the total risk?
  • What do we want to happen?
  • What's the maximum upside?
  • What is the market forecast?
  • What to do if the market moves against us?
  • Capital requirements
  • And more...

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio237.mp3
Category:general -- posted at: 1:39pm CDT

How can stock investors use options? You've come to the right place. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of the AAPL collar from two weeks ago
  • What about capital gains?
  • Remember we had a small credit
  • Where are we now?
  • What about additional risk?
  • What's an alternative? Using an example with FB
  • Using a FB option as a surrogate for stock
  • Setting up the trade
  • Selecting expiration and strike
  • Remember, one option for every 100 shares of stock

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio236.mp3
Category:general -- posted at: 2:09pm CDT

Huddle up, traders! For your listening pleasure, Mark and Brian answer your burning options trading questions, including:

  • Question from Barry Brown - Good morning. Have the show archives been withdrawn or are they still available? Question: If we put on a poor man's covered call position and the price moves up the short call, when do you recommend rolling, etc? Thank you. Your stuff is great. Really enjoy all you efforts. Thank you.
  • Question from Douglas Tilley - Hello! Regarding long stock substitution:
    1. With call options, are deltas additive? I.e. why are (2) 40-delta calls so much cheaper than (1) 80-delta call? This seems like buying equivalent total delta for about half the cost.
    2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put? (Vs. buying calls for a desired total delta).
    What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education - D Tilley, DDS
  • Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal." Never understood that one.
Direct download: OptionsPlaybookRadio235.mp3
Category:general -- posted at: 4:09pm CDT

It's always a good idea to review basics. Today we're looking a covered calls, and it's cousin, collars. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Lots a bad news around Apple
  • What to do approaching the new year?
  • Thinking about capital gains, taking losses
  • What is the scenario?
  • What will selling a covered call do?
  • What is the risk? Reward?
  • What would a collar look like?
  • What would it cost?
  • Risk and reward

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio234.mp3
Category:general -- posted at: 2:49pm CDT

HD is announcing earnings soon. Let's look at how to set up a straddle to cap risk. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • What's happened since last week?
  • What did we learn from the NVDA backspread from last time?
  • What happened to the one without earnings?
  • What happened to the one that contained earnings?
  • Let's take a look at Home Depot
  • Earnings are coming up
  • Setting up the trade
  • We know the max risk and max upside
  • How many contracts should we do?
  • What is our rationale?
  • What's the goal?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio233B.mp3
Category:general -- posted at: 11:14am CDT

Nvidia is announcing earnings soon. Can we expect a dead cat bounce on the stock? You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • What has NVDA been up to lately?
  • NVDA has an earnings announcement on 11/15
  • Selecting expiration dates
  • Where is implied volatility for the expirations?
  • What are our expectations for IV?
  • Putting on a backspread with calls
  • Setting up the trade
  • What is the risk?
  • What do we want to happen?
  • Which to choose? Why?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio232.mp3
Category:general -- posted at: 4:36pm CDT

Being in the heart of FAANG earnings season, let's look at GOOGL and AMZN. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • What is happening in the markets right now?
  • What about GOOGL and AMZN, specifically?
  • What are the expected moves?
  • What is our strategy?
  • We're looking for positive theta, but negative vega
  • Let's look at a GOOGL skip-strike butterfly
  • Selecting strikes and expiration
  • What is the cost? Maximum risk? Remember margin!
  • Remember the risk of gap-up or gap-down
  • What do we want to happen?
  • What about AMZN?
  • What is the expected move?
  • Selecting strikes and expiration
  • What is the maximum risk? Reward?
  • What do we want to happen?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio231.mp3
Category:general -- posted at: 2:17pm CDT

Huddle up, listeners. It's time for Mark and Brian to answer your questions.

  • Question from BuseKrus D - New to options, and working with a small account size. Looked to put on a trade with a strategy from the playbook (Christmas tree butterfly I think) with a 57-60-66 2x3x1 call fly for a total debit of 1.30. I've always heard that for a defined risk debit trade the max risk is the amount paid. However, the brokerage was saying I needed around 740 in my account to be able to put on the trade. Is there an explanation? Is the capital required to put on a trade greater than the possible max loss on defined risk debit spreads? Thanks.
  • Question from Ron S6 - What's your suggested minimum account size to start trading options?
  • Question from Lance Everett: Hello again Brian. Still enjoying the options playbook radio program. It's my quick options education fix for the week. I listen on my commute to work every Thursday. I have a few questions for your next Huddle episode if don't mind. If you can only answer one then that's fine too.
    1. You talked front spreads on episode 227. Do you ever use more traditional ratio spreads- outside of repair scenarios, of course? Bonus points if you know where the term front spread came from.
    2. What are your thoughts on the crypto boom? No options yet but they are coming. Is Ally planning to jump on the train?
    3. Do you ever use short calendars - so selling longer term and buying the near term?
    4. Is there a sequel to the playbook in the works? Although the show is kind of like an ongoing live update/ sequel so that's probably better. Thanks again for making my Thursdays fun and informative.
Direct download: OptionsPlaybookRadio230.mp3
Category:general -- posted at: 11:33am CDT

Let's go back in time and review the last two weeks' worth of trades, including:

  • Bearish COST backspread
  • What was the trade?
  • What did we want to happen?
  • How did it turn out?
  • What did we learn?
  • Then there was a NFLX calendar
  • What was the trade?
  • What did we want to happen?
  • What did happen?
  • Let's look at the VIX
  • What about a TSLA fly?
  • Setting up the trade
  • What is the cost?
  • What is the upside?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio229.mp3
Category:general -- posted at: 3:13pm CDT

Earnings in FAANG stocks are coming up, with NFLX leading the way on 10/16. We're going to do a long calendar spread with calls. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • Why a calendar spread?
  • Where is NFLX now?
  • Earnings are released on 10/16
  • What is the expected earnings?
  • Selecting a strike
  • Setting up the trade
  • What is the maximum risk? Reward?
  • What do we want to happen?
  • What is the net delta?
  • And more

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio228.mp3
Category:general -- posted at: 2:24pm CDT

Costco (COST) has earnings coming up next week. We're going to do a backspread with puts, or a ratio volatility spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • COST will announce earnings on 10/4
  • What does the chart say?
  • Let's do a backspread with puts
  • What's the expected move?
  • What's our take?
  • Selecting the expiration and strikes
  • What if we're wrong?
  • What if we're right?
  • What is the maxium risk? Reward?
  • What happens the farther you go out in time?
  • Does it work for every underlying?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio227.mp3
Category:general -- posted at: 2:01pm CDT

Tilray Inc. (TLRY) has gone up over 100% in two days. With stocks that move like this, it's a great learning experience. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's NKE diagonal spread
  • What did we want to happen?
  • What actually happened?
  • What does that mean for the contract we bought?
  • What do to now? Let's roll!
  • Crazy moves in TLRY
  • Why are the puts so pricey?
  • What would Brian do? (WWBD?)
  • Super high implied volatility
  • And more....

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio226.mp3
Category:general -- posted at: 2:10pm CDT

Nike (NKE) has been in the news a lot lately and will announce earnings on September 25. Let's take a look at a diagonal trade. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • What happened to the SPX?
  • Did you get out, or did you get the stupid award?
  • NKE is near all-time highs
  • Setting up the trade
  • Selecting strikes and expirations
  • Pay attention to the delta of the trade
  • Addressing different scenarios

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio225.mp3
Category:general -- posted at: 3:22pm CDT

Now that earnings season is over, it's time to get back to the basics. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • Setting up a long put butterfly in SPX
  • Where is the SPX now?
  • Where is volatility?
  • Selecting strikes
  • Using the nearest-term expiration
  • Settlement is at the close on Friday
  • What's the upside? Downside?
  • What do we want to happen?
  • How to roll into a short put spread
  • Remember commissions!

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlabyookRadio234.mp3
Category:general -- posted at: 1:30pm CDT

Now that earnings season is over, it's time to get back to the basics. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • What happened if you stuck around to the close on Friday?
  • How did we do?
  • Markets are closed for Labor Day
  • How do we take the holiday into account?
  • Where is the S&P 500 right now?
  • Selecting strikes and expiration
  • What do we want to happen?
  • What if it starts to go south?
  • How to turn this into a butterfly
  • And more....

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio233.mp3
Category:general -- posted at: 1:24pm CDT

Now that earnings season is over, it's time to get back to the basics. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why choose the S&P 500 index?
  • Selecting the expiration (just two days!)
  • Selecting strikes
  • What is the risk?
  • Remember commissions, especially with a three-legged trade
  • Interesting downside considerations
  • What do we want to happen?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio222.mp3
Category:financial podcast -- posted at: 8:33pm CDT

Huddle, up listeners! It's time for Brian and Mark to take on listener questions, including:

  • Options question of the week: Earnings season in in full swing. Which names will dominate your options trading this week?
    • 47% - AAPL
    • 37% - TSLA
    • 6% - GPRO
    • 10% - CBOE
  • Question from Imhad1: Is HMNY now the most option-like stock ever? Back to $.08 after reverse splitting up to $14. Crazy! Who would buy an option on this thing?
  • Question from Ling: I've heard some educators say that you should never hold out for the max profit in an options spread trade because that means you held onto it too long. Is this the case? Do you agree? Thx and enjoying the handbook.
  • Question from Flyguy: Hey what do you guys do with your long calendar spreads? Do you close out the short leg if the stock doesn't move then keep the long leg or just close the whole spread out?
Direct download: OptionsPlaybookRadio221.mp3
Category:general -- posted at: 1:18pm CDT

As earnings season winds down, we are looking at strategies before, during, and after announcements. Last week, we did a skip-strike butterfly in GOOGL. Let's follow up on how that went. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of the skip-strike butterfly
  • What has happened to GOOGL since then?
  • BKNG (formerly Priceline) is about to announce earnings
  • Setting up the trade
  • Selecting strikes, expiration
  • What is the cost?
  • What do we want to happen?
  • Why a butterfly versus a skip strike butterfly?
  • And more...

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio220.mp3
Category:financial podcast -- posted at: 11:39am CDT

We are in the heart of earnings season, and next week a lot of the FANG stocks will announce. Two weeks ago, we did a diagonal spread in GOOGL. Let's follow up on how that went, and look at a skip-strike butterfly, as well. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • How was the diagonal spread set up?
  • What happened to GOOGL since the paper trade was established?
  • What are we doing now?
  • Setting up the skip strike butterfly
  • Selecting strikes and expiration date
  • What is the cost?
  • Remember implied volatilities!
  • What happens if we are wrong? Right?
  • And more...

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio219.mp3
Category:general -- posted at: 2:43pm CDT

Huddle up, listeners. It's time for listener questions. If you have questions about anyoptions plays, you can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • How do you like to trade options during earnings season? Do you hold a position through an announcement?
  • How do you determine a strategy or direction? How to select strikes and expiration?
  • What the brokers versus the regulators have to say about defined risk trades

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio218.mp3
Category:general -- posted at: 3:04pm CDT

We are in the heart of earnings season, and next week a lot of the FANG stocks will announce. Let's take a look at a diagonal spread in GOOGL. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why a diagonal spread?
  • What is a diagonal spread?
  • Setting up a trade
  • GOOGL announces earnigns on 7/23
  • Selecting the strikes and expirations
  • What do we want to happen? What do we want to avoid?
  • What is the risk? Reward?
  • Remember margin!

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio217.mp3
Category:general -- posted at: 2:43pm CDT

We are back into earnings season. Let's take a look at a skip-strike butterfly in NFLX. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of the Boeing calendar spread from last time
  • What happened since the paper trade was put on?
  • Looking ahead to NFLX earnings
  • Where is NFLX now?
  • What is the expected move?
  • What happens if we are wrong?
  • What is the maximum return? Reward?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio216.mp3
Category:general -- posted at: 11:15am CDT

Today we are bringing you the best of Options Playbook Radio. 

Originally posted December 28th, 2017

Mark and Brian are back to answer listener questions. In particular:

  • Question from Taj Penaso - Hi, will there be options for bitcoin once the futures are traded?? or just the futures until there are tradeable ETFs available? Thanks.
  • #Options #QOTW - Now it's a party! #Bitcoin futures are live on both @CMEGroup & @CBOE. But everyone's asking us the $1M question - "When will we get #Bitcoin #Options?" So we thought we'd ask you - When will we be able to trade #options on these futures? 52% - Q1 2018, 19% - Q2 2018, 14% - Q3 2018, 5% - Q4 2018
  • Question from L Penguin - I have a question for the option playbook. I'm a new options trader and I want to buy a LEAP call bc it looks like the stock is going to go to up in the next 12 months, but I don't want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I'd like to capture. Is this even possible? Interested in your thoughts, thanks!...I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.
  • Question from VLL98 - What happens to my options if the company declares bankruptcy? Can I still exercise my calls and buy the stock at the strike price?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

 

Direct download: BestOfOPR189.mp3
Category:financial podcast -- posted at: 12:24pm CDT

Tariff turmoil is rocking the market and is beating up some stocks, including Boeing (BA). You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Implied volatility is spiking because of talk of tariffs
  • BA announces earnings on 7/25
  • Stock has fallen about 40 points over the last month
  • Putting on a long call spread
  • Selecting strikes and expirations
  • What is the total cost?
  • What do we want to happen?
  • What is the maximum risk? Reward?
  • Rolling and adjusting options

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio215.mp3
Category:general -- posted at: 11:30am CDT

News out of Canada regarding the legalization of marijuana has impacted volatility of medical marijuana stocks. This is an interesting opportunity to get back to basics, including a covered call and a cash-secured put. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • How did the trade work out?
  • Legal pot in Canada? That impacts IV for CGC
  • What is our outlook?
  • Setting up the trade
  • What do we want to happen?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio214.mp3
Category:general -- posted at: 10:23am CDT

This week we will look at a long butterfly with calls. You can find more on page 102 in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • A review from last week (diagonal spread with calls)
  • Staying in FedEx
  • Earnings! June 19'
  • Setting up the trade
  • Selecting strikes, expiration
  • What is the maximum risk? Reward?
  • What do we want to happen?
  • And more...

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio213.mp3
Category:general -- posted at: 2:42pm CDT

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: Options_Playbook_212_final.mp3
Category:financial podcast -- posted at: 2:12pm CDT

Huddle up, listeners. It's all listener questions today on Options Playbook Radio.

Including:

  • Is there a rule of thumb on how many strikes to skip in a skip strike butterfly?
  • What is Brian's favorite underlying for trading options
  • Do you trade options on stocks below $5?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio211.mp3
Category:general -- posted at: 2:32pm CDT

We looked at doing a long call spread last week, which was net positive theta time premium. This week we will be looking at indexes. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • Indexes and volatility
  • Rolling out of SPY put flys into credit spreads
  • Trading it directionally
  • Setting up the trade
  • Selecting strikes
  • What do we want to happen?
  • What is the max risk? Reward?
  • To adjust or not to adjust?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: Options_Playbook_210_final.mp3
Category:financial podcast -- posted at: 10:32am CDT

We are back in the saddle discussing options strategies. With the VIX in the low- to mid-teens, that makes for an interesting time to look at volatility. We are going to look at a long call spread, possibly with a roll. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • Indexes and volatility
  • Looking to do this trade for positive theta
  • Selecting expriations
  • What's a time bomb butterfly?
  • Setting up the trade
  • Selecting strikes
  • What do we want to happen?
  • What is the max risk? Reward?
  • To adjust or not to adjust?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio209B.mp3
Category:general -- posted at: 12:06pm CDT

Mark and Brian are on location at the Options Industry Conference, the annual event that brings everyone in the options industry together. They discuss:

  • Are covered calls really the best strategy for novice options traders?
  • Is there a good rule of thumb on when to use a ratio spread?
  • Should trading be concentrated in the last 30 minutes of the day to take advantage of liquidity?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio209.mp3
Category:general -- posted at: 12:47pm CDT

Mark and Brian are on location at the Options Industry Conference, the annual event that brings everyone in the options industry together. They discuss:

Specifically:

  • Launching new products to meet retail investor needs
  • Liquidity concerns
  • Exchanges fragmenting liquidity through extra strikes and expirations
  • What about price improvement?
  • Unlimited quoting
  • What did they learn at this year's event?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio207.mp3
Category:financial podcast -- posted at: 1:42pm CDT

We are in the tech portion of earnings season, so let's take a look at Facebook. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • Where is FB trading right now?
  • What is the situation with FB?
  • Can we sell the put spread for enough of a credit to buy a call?
  • Setting up the put spread
  • Selecting strikes
  • Looking to buy a call from the proceeds
  • Selecting the strike
  • What do we want to happen?
  • What is the risk? Reward?
  • How you can double up to catch up
  • Some rationale on time frame

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio206.mp3
Category:general -- posted at: 2:42pm CDT

Welcome to Options Playbook Radio

On this episode we discuss:

  • A review of our earnings trade in NFLX
  • A complete breakdown of our new earnings skip-strike butterfly in GOOGL.
Direct download: Options_Playbook_205_final.mp3
Category:financial podcast -- posted at: 6:18pm CDT

In this episode, Brian looks at a NFLX butterfly before earnings, including:

  • Selecting strikes & expiration
  • Watch out for skew
  • Plan the trade, trade the plan
  • And more...
Direct download: OptionsPlaybookRadio204.mp3
Category:general -- posted at: 1:04pm CDT

We are back in the saddle discussing options strategies. As we are a few days away from earnings, let's look at something that is not driven by earnings. While we're waiting for volatility to slow down, let's look at a short-term butterfly in UNH. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • UNH announces earnings on 4/16
  • Doing a very short-term butterfly to not contain earnings
  • What are we hoping to happen?
  • What is the implied volatility?
  • Selecting strikes
  • Setting up the trade
  • What is the maximum risk? Reward?
  • What about time decay?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio203.mp3
Category:general -- posted at: 2:45pm CDT

It's time to huddle up, in which Brian and Mark address listener questions and comments.

In this episode:

  • Question from Ed Bankert: Debating on using covered calls or short puts. Which is better for a less experienced options trader who wants to make money?
  • Question from Duffy: How do you handle the fixed-time aspect of trading options?
  • Comment from Charlie T.: Not really an options guy. I don't need the headache of yet another unknown element aka time. It’s hard enough just picking my stocks, deciding price points, exit points, etc.

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio202.mp3
Category:general -- posted at: 1:18pm CDT

As we approach the end of earnings season, there are still a few names left to announce. Last week we talked about a FedEx butterfly. Let's revisit what has happened since. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • A review of last week's FDX butterfly
  • What has happened to FDX since the paper trade?
  • What is happening in Nike?
  • How about a back spread?
  • Looking for volatility
  • Hoping the stock will move more than the expected move
  • Selecting expiration
  • Selecting strikes
  • What is the maximum gain? Loss?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio201.mp3
Category:general -- posted at: 12:45pm CDT

Last week we talked about a Costco butterfly. Let's revisit what has happened since. You can find more on page 102 (butterfly) and page 126 (iron condor) of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's comparison of the butterfly vs. iron condor in COST
  • Breaking down the butterfly
  • What about the iron condor?
  • What happened after COST announced earnings?
  • Implied volatility and time decay as factors
  • Moving on to FedEx, which reports earnings on 3/20
  • How to set up a trade to contain the earnings
  • Selecting strikes
  • What is the cost?
  • What is the maximum risk?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio200.mp3
Category:general -- posted at: 9:23am CDT

Last week we talked about a Costco butterfly. Let's revisit what has happened since. You can find more on page 102 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • Where is Costco trading now?
  • Setting up the trade
  • Why timing matters
  • Comparing this to an iron condor
  • Why timing matters, part two
  • More risk, more reward?
  • Selecting strikes
  • What is the desired outcome

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio199.mp3
Category:financial podcast -- posted at: 2:33pm CDT

Let's review the skip-strike butterfly in PCLN from last week. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. The long butterfly (used on the Costco paper trade) is on page 102.

Specifically:

  • A review of last week
  • A change of name
  • Did you adjust?
  • Was time on your side?
  • Who is up next? Costco Holdings!
  • What are we looking for?
  • Putting on an at-the-money butterfly
  • Selecting strikes
  • What is the break even?
  • Avoiding the "stupid award"

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio198.mp3
Category:general -- posted at: 2:16pm CDT

As we enter the end of earnings season, there are still a few big names left to report, including Priceline, PCLN. This is an interesting opportunity for a skip-strike butterfly. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Earnings + expiration + implied volatility = interesting situation
  • Goal: do the trade for a net credit
  • PLCN announces earnings on 2/27
  • What is the expected move?
  • What is the implied volatility?
  • Selecting the strikes
  • Remember commissions!
  • What's the risk? Reward?
  • When to get out?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio197.mp3
Category:general -- posted at: 5:07pm CDT

We are back to the playbook this week and taking a close look at Wynn Resorts. There is a lot of volatility in the stock these days with the CEO in the news quite a bit these days. We are looking at a very short-term butterfly. You can find more on page 104 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why a very short-term trade?
  • What is the desired outcome?
  • What about the stock going ex-dividend?
  • Setting up the trade
  • Why use puts?
  • Selecting strikes
  • What is the cost?
  • When to get out?
  • Looking at net theta versus net delta

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio196.mp3
Category:general -- posted at: 1:46pm CDT

It's time to huddle up and take on listener questions in this episode of Options Playbook Radio.

  • Question from Janice: Hi Brian! I have a question about the way you talk about the alternatives available for managing the LEAPS option put spread if the market goes down. Can you please explain?
  • Question from Matt: What's up with the FB $5 calls?
  • Question from Johnny Bananas: If you buy a put option and the strike price is $5 and the stock drops to $3, is it still worth money?
Direct download: OptionsPlaybookRadio195.mp3
Category:general -- posted at: 2:38pm CDT

Continuing with the idea of FAANG stock earnings, today we're looking at an AAPL protective put. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • How do you protect yourself against a big move in AAPL after earnings?
  • Where is AAPL now?
  • What is the outlook?
  • Selecting a strike and expiration
  • What is the cost? Upside?
  • Meeting the "deductible"
  • What about a protective put spread?
  • What is the cost?
  • Why do it?
  • How do weeklys impact the ability to buy insurance around earnings?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio194.mp3
Category:financial podcast -- posted at: 2:03pm CDT

In this episode, we are looking at a calendar trade around earnings in TSLA. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Where is TSLA trading as of this recording?
  • When are they expected to announce earnings?
  • Where is the at-the-money straddle right now?
  • Setting up a trade into earnings
  • Selecting a strike
  • The volatility caveat
  • What is the desired outcome?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio193.mp3
Category:financial podcast -- posted at: 3:53pm CDT

In this episode, we are looking beyond the Options Playbook and are selling a put credit spread to pay for a long call. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Looking at Intuitive Surgical, Inc. (ISRG), which has been on a tear lately
  • Earnings pushed the stock even higher
  • Expensive underlying = expensive options
  • Taking a long view using LEAPS
  • Selecting strikes for the put spread
  • Buying the at-the-money call
  • How does the trade work?
  • What is the cost?
  • What is the risk?
  • How to close it out?
  • Alternatives to the trade as described

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio192.mp3
Category:financial podcast -- posted at: 3:28pm CDT

In this episode, we are looking beyond the Options Playbook and are using a long combination to create a synthetic stock and buy protection. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's episode
  • What is a synthetic long stock?
  • Where is Facebook now?
  • How to create a synthetic long position
  • Adding a twist...using a put spread
  • Selecting expirations and strikes
  • What is the cost? Risk?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio191.mp3
Category:financial podcast -- posted at: 2:55pm CDT

Welcome to 2018! Let's jump right into strategies, specifically around earnings. In this episode, we are looking at a long calendar spread with puts in FCX. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why are we picking FCX?
  • When does FCX announce earnings?
  • What is the implied volatility?
  • Why are we expecting a major announcement?
  • Why pick a calendar around earnings?
  • Defining a calendar spread
  • Remember, if you do this, you're long implied volatility
  • Caveats and other considerations
  • Setting up the trade
  • What is the cost? Risk?
  • What do we want to happen?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio190.mp3
Category:financial podcast -- posted at: 12:26pm CDT

Mark and Brian are back to answer listener questions. In particular:

  • Question from Taj Penaso - Hi, will there be options for bitcoin once the futures are traded?? or just the futures until there are tradeable ETFs available? Thanks.
  • #Options #QOTW - Now it's a party! #Bitcoin futures are live on both @CMEGroup & @CBOE. But everyone's asking us the $1M question - "When will we get #Bitcoin #Options?" So we thought we'd ask you - When will we be able to trade #options on these futures? 52% - Q1 2018, 19% - Q2 2018, 14% - Q3 2018, 5% - Q4 2018
  • Question from L Penguin - I have a question for the option playbook. I'm a new options trader and I want to buy a LEAP call bc it looks like the stock is going to go to up in the next 12 months, but I don't want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I'd like to capture. Is this even possible? Interested in your thoughts, thanks!...I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.
  • Question from VLL98 - What happens to my options if the company declares bankruptcy? Can I still exercise my calls and buy the stock at the strike price?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: Options_Playbook_189_final.mp3
Category:financial podcast -- posted at: 10:25am CDT

In this episode, we are looking at a covered call, but with a twist: a credit spread around stock you already own. You can find more on page 80 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • FedEx announced earnings on 12/20, was up 3.5% after the announcement
  • It hit the all-time high on 12/20
  • What are the benefits of doing a credit spread instead of just a covered call?
  • Setting up the trade: picking expiration (and why that date)
  • Selecting strikes
  • What is the approach?
  • What is the risk?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio188.mp3
Category:financial podcast -- posted at: 2:33pm CDT

Mark and Brian are back to answer listener questions. In particular:

  • Question from Ariell - Why should I ever buy puts? I can use a stop order in the stock for free and then put that extra capital to work in my trading account. By my math using stops instead of puts can boost your account 5-10% per year. That’s a lot of cheese.
  • Question from The Financial Grynch - Do you REALLY reckon long options is profitable?
  • Question from Lonesome - Could you explain Theta and how it helps/hurts options traders? Should anyone ever buy OTM options?
  • Question from Tom Matt - What happened to minis? Are they ever coming back?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio187.mp3
Category:financial podcast -- posted at: 1:22pm CDT

In this episode, we revisit an old favorite: the skip-strike butterfly. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Broadcomm announces earnings soon, and has been very volatile lately
  • Why a skip-strike butterfly?
  • What is the outlook?
  • Selecting strikes
  • What is the cost?
  • What about the maximum gain? Loss?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio186.mp3
Category:financial podcast -- posted at: 12:57pm CDT

In this episode, Brian explores covered calls to get out of positions before the end of the year.You can find more on page 134 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • If you need to thin out your portfolio before the end of the year, consider covered calls
  • Looking at AAPL
  • Selecting an expiration
  • Selecting strikes
  • What is the cost?
  • What do we want to happen?
  • An alternative strategy
  • What is the moral to the story?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio185.mp3
Category:financial podcast -- posted at: 1:07pm CDT

For your listening pleasure, we bring you an all-listener question episode of Options Playbook Radio.

Direct download: BestofOptionsPlaybookRadio-ListenerQuestions.mp3
Category:financial podcast -- posted at: 12:00pm CDT

The holiday season brings to mind covered calls.

In this episode, Brian covers:

  • Last week's trade in DIS
  • What did we want to happen?
  • What DID happen?
  • Avoidint the stupid award
  • The holidays are coming, that means shortened trading weeks
  • It might be a good time to trade covered calls
  • Getting "free" time decay with holidays
  • Where is AAPL?
  • Selecting strikes
  • And more...
Direct download: OptionsPlaybookRadio184.mp3
Category:financial podcast -- posted at: 1:16pm CDT

Since it is still earnings season, it makes sense to capture the movement surrounding earnings announcements. In this case, we are looking at a bullish ratio spread in DIS.

In this episode:

  • A recap of what happened with last week's FB position
  • After AMZN, FB looked a little boring
  • DIS reports earnings after the close on Thursday, November 9
  • What is the sentiment on DIS?
  • Looking at the long straddle to figure out pricing
  • Setting up a backspread in DIS
  • Picking the strikes and expirations
  • What is the downside? Upside?
  • What do we want to happen?
Direct download: OptionsPlaybookRadio183.mp3
Category:financial podcast -- posted at: 9:30am CDT

Today we are going to look at a ratio spread with puts on FB.

In this episode:

  • A review of last week's skip-strike butterfly in AMZN.
  • What was the strategy? Expectation?
  • Where is AMZN now?
  • What about GOOGL?
  • How do you want the market to move when you have a butterfly position?
  • FB earnings are coming up. Let's look at a ratio spread.
  • What is the outlook?
  • Setting up the trade.
  • Selecting strikes.
  • What is the cost?
  • What do we want to happen?
  • What is the cost?
  • Remember volatility.
Direct download: OptionsPlaybookRadio182.mp3
Category:financial podcast -- posted at: 2:10pm CDT

This is probably the biggest week of earnings reporting, when the most valuable stocks report. There are things to take into account because of earnings:

  • Remember that implied volatilities rise around earnings
  • Why a skip strike butterfly?
  • Setting up the trade to pay for itself
  • Where is AMZN trading right now?
  • What is the long straddle aka the expected move
  • Using the long straddle to select strikes
  • Earnings-related risks
  • What is the expected move?
  • Setting up the trade
  • What is the upside? Downside?
  • Nuances of options pricing
  • Remember time premium
Direct download: OptionsPlaybookRadio181.mp3
Category:financial podcast -- posted at: 11:55am CDT

Mark and Brian are back to answer listener questions.

  • Question from Ejh4isu - Let's say you're short naked a bunch of puts and the trade goes against you, and you don't have the money to pony up? What can your broker do?
  • Question from LCB - This is a challenging time to sell options due to low volatility. So does it stand that the opposite is true? Is it a good time to buy options? Particularly protective puts?
  • Question from Andrew Lane - I tried searching for options on the major advisor news sources including Pensions & Investments and Financial Advisors magazine and came up blank. Why do these mainstream outlets ignore this space? Where should I go to learn more about options for advisors?
Direct download: OptionsPlaybookRadio180.mp3
Category:financial podcast -- posted at: 1:46pm CDT

It's time to tackle listener questions again on Options Playbook Radio. In this episode, Mark and Brian cover:

  • Question from Albert Deckel - First, I want to thank you for all the effort you place into the options playbook. I find your lessons absolutely clear, understandable and instructive....a rare combination!! I bought your book and find that, also, clear and concise and very informative. Two questions: While I understand how to convert a "Delta" into meaning, I really don't understand what consists of a "high" vs. "low" Gamma, Theta or Vega. For example, when is theta so high that it makes the purchase of an contract dubious, or Vega so high that it makes the purchase of an OTM contract desirable? Also, if I were to write an ITM put, what combination of Delta, Gamma, Theta or Vega am I looking for? Thanks so much!! Al
  • Question from Tim - Why isn't it standard or maybe required to let people close out shorts for free below $.10?
Direct download: OptionsPlaybookRadio179.mp3
Category:financial podcast -- posted at: 3:38pm CDT

We are continuing the discussion of options pricing. This week we take a deep dive into pricing of a butterfly.

Specifically:

  • Looking at a 10-day butterfly in AAPL
  • Picking a five-point spread
  • What strikes and expirations to choose?
  • What will this cost?
  • What is the maximum risk and reward?
  • What do we want to happen?
  • What impacts the pricing of butterflies?
  • Managing expectations
  • Looking at the same thing for a November 17 expiration
  • What is the ideal scenario?
Direct download: OptionsPlaybookRaido178.mp3
Category:financial podcast -- posted at: 1:44pm CDT

Today Brian is covering a short call spread (which is bearish) on AAPL. All of this applies on the put side, but in this episode, calls are being featured.

Specifically:

  • What dynamics do you need to think about when trading short spreads?
  • Look at the most at-the-money straddle to get an idea about pricing
  • Example 1: November 17 expriation; 52 days out
    • Selecting strikes
    • What will this cost?
    • What is the max risk? Reward?
  • Example 2: October 6 expiration; 10 days out
    • Selecting strikes
    • What will this cost?
    • What is the max risk? Reward?
  • Which would you choose?
  • How to close out the trade?
  • How to roll the trade?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio177.mp3
Category:financial podcast -- posted at: 1:01pm CDT

In this episode, Brian explores long spreads. Specifically, long call spreads and long put spreads. These can be found on pages 60 and 62, respectively, of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Details include:

  • The dynamics of spread trading
  • Using AAPL as an example
  • What to consider regarding forecasting and timing
  • The value of the spread does not provide quick rewards
  • Selecting strikes
  • What is the maximum risk?
  • What is the maximum reward?
  • Always look at how much time premium you have

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio176.mp3
Category:financial podcast -- posted at: 1:38pm CDT

In this episode, Brian covers:

  • Using a pricing calculator to review different scenarios
  • Buying an out-of-the-money option
  • What happens to delta?
  • Looking at probability
  • When time is your ally
  • When to buy an out-of-the-money option
  • How to get low time premium
  • Closer to expiration = higher delta
  • What about at-the-money options?
  • When to buy, and when not to
Direct download: OptionsPlaybookRadio175.mp3
Category:general -- posted at: 4:03pm CDT

 

Last week, we started the back to the basics with the Greeks. You can find an entire chapter on Greeks in The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode, Brian discusses:

  • Looking at probability using a 90-day option as an example
  • What is the probability of an $8 move in a $60 stock in 90 days?
  • Where do you think the option will be trading at in 90 days?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio174.mp3
Category:general -- posted at: 5:01pm CDT

Now that earnings season is over it's time to get back to basics: the Greeks. You can find an entire chapter on Greeks in The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of last time
  • Using the Greeks
  • What does a delta do?
  • Meet the Greeks in The Options Playbook
  • As expiration approaches, what happens to delta? For that, you need gamma
  • What about theta?
  • Delta when a contract is in-, at- or out-of-the-mooney
  • Delta moves slower than other Greeks
  • You can't have slow time decay on a fast moving option

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio173.mp3
Category:financial podcast -- posted at: 4:25pm CDT

With MRVL still to announce earnings, it might be interesting to look at a long call spread in the name. You can find this on page 60 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of last time
  • MRVL announces earnings on 8/24 after the close
  • What is the outlook for MRVL
  • Selecting the expiration
  • What is the most at-the-money strike?
  • Buying as much time premium as selling
  • What is maximum risk? Reward?
  • Selecting a different expriation
  • What is maximum risk? Reward?
  • Why does one trade cost more than the other?
  • Time premium caveats

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio172.mp3
Category:financial podcast -- posted at: 3:02pm CDT

Since it's still earnings, season we are going to continue to look at expensive stocks. Today's subject is Alibaba (BABA), and we are exploring a backspread. You can find backspreads in The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

The details:

  • The difference bewteen a skip-strike butterfly and a backspread
  • What do we want to happen?
  • Why a backspread over a skip-strike butterfly?
  • Earnings-related considerations
  • What is the marketplace expecting after the earnings?
  • Selecting strikes
  • What will this cost?
  • What is the timeframe?
  • And more...

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio171.mp3
Category:general -- posted at: 2:26pm CDT

It's time for listener questions on Options Playbook Radio. Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

In this episode Mark and Brian discuss:

  • Question from LesNod: How the heck do you actually get out of straddles? One side of a straddle is always a loss!
  • Question from Jelly: Can I buy longer-term options than LEAPS?
  • Question from Kim D.: How high to rates need to go before I need to worry about rho?
  • Question from Axel D.: Why do they update open interest only once a day?
Direct download: OptionsPlaybookRadio170.mp3
Category:financial podcast -- posted at: 2:37pm CDT

Since we are still in the middle of earnings season, it makes sense to continue with stocks that are about to release earnings, in this case Tesla, which announces earnings after the recording of this show. You can find skip strike butterflies on page 108 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode, Brian covers:

  • A review of last time
  • Where did the AMZN skip strike butterfly end up?
  • Where is TSLA?
  • What is the outlook?
  • What is the expected move?
  • Setting up the trade: selecting strikes
  • What's the maximum risk? Reward?
  • What do you want to happen?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio169.mp3
Category:financial podcast -- posted at: 1:19pm CDT

We are back in earnings season. Given the possibility for big moves, we will look at the skip strike butterfly with calls, which you can find on page 108 of The Options Playbook. This is always available onoptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • What happens to implied volatiilty around earnings?
  • The dynamics of the trade
  • The more costly the underlying, the more costly the option
  • AMZN announces earnings on 7/27 after the close
  • What is the "expected move"?
  • Picking a close expiration
  • Selecting strikes
  • What is the maximum risk?
  • What is the break-even point?
  • What if we are completely wrong?
  • What is the best-case scenario?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio168.mp3
Category:financial podcast -- posted at: 3:23pm CDT

It's huddle time again on Options Playbook Radio. This is when Mark and Brian answer listener questions. Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

The Bobster wants to know if options can be traded outside of U.S. trading hours.

  • Short answer: yes and no
  • Longer answer: liquidity issues, wider spreads, other nuances.
  • Should there be regular after hours?
  • Should it be limited to a number of names?
  • Index versus equity options

Nelly2 wants to know about assignment. Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?

  • Cash-settled
  • Guidelines for cash-settled versus regular settled
  • Sellers and buyers rights and obligations
Direct download: OptionsPlaybookRadio167.mp3
Category:financial podcast -- posted at: 11:43am CDT

For the last few episodes, we were reviewing skip-strike butterflies in GOOGL. You can find this on page 87 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of the last few weeks of strategies in GOOGL
  • Looking at IBM, which will announce earnings on July 18
  • Remember: earnings add a bit of volatility to the underlying
  • Where is the IV?
  • Having a neutral to bullish outlook
  • Going out further in time. Why?
  • Time is on your side
  • Picking the expiration
  • Picking the strikes
  • What will this cost?
  • What is the maximum risk? Reward?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio166.mp3
Category:financial podcast -- posted at: 8:51am CDT

Last week we looked at a GOOGL skip-strike butterfly. Staying on the same page, we will put on a new paper trade as a follow up for that one. You can find this on page 108 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of last week
  • What was the trade?
  • What did it cost?
  • What happened since?
  • What are we doing now?
  • Setting up the trade
  • Selecting strikes
  • What about expirations?
  • Max loss and gain?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio165.mp3
Category:financial podcast -- posted at: 3:59pm CDT

Today Brian covers a skip-strike butterfly, which you can find on page 109 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • What are the right circumstances for trading a skip-strike butterfly?
  • A bad news event in GOOGL creates an interesting situation for options traders
  • Where is GOOGL right now?
  • What exactly is a skip-strike butterfly?
  • What's our forecast?
  • Where is the at-the-money straddle?
  • Setting up the trade
  • Picking strikes
  • Picking expiration
  • What's the maximum risk?
  • What will this cost?
  • Butterfly considerations
  • What do we want to happen?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio164.mp3
Category:financial podcast -- posted at: 12:37pm CDT

The Huddle: Listeners weigh in with questions

  • Question from Steve - With the VIX so low, I am not selling a lot of options anymore, because I am afraid that I will not collect enough premium. Am I thinking of this incorrectly?
  • Question from Lincan -My go-to options strat is to sell covered puts on stocks that I want to buy then get paid to wait. If the stock comes my way I eventually trade out of it using a covered call. What do you think? Savvy or stupid?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio163.mp3
Category:financial podcast -- posted at: 12:21pm CDT

It's all listener questions in this special edition of Options Playbook Radio

  • Question from Ejh4isu - If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens ? Example: sell 2395/2400 and SPX settles at 2397.
  • Question from Kraken1975 - Which of the Greeks do you utilize the most and why?
  • Question from ButcherBoyz - What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio162.mp3
Category:financial podcast -- posted at: 2:26pm CDT

In this episode, Brian reviews two paper trades from previous episodes and opens up a third. You can find the backspread with calls on page 84 of The Options Playbook, and the put debit spread is on page 62. Plus, this week we'll look at the fig leaf, which you can find on page 56. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Today, Brian discusses:

  • A review of the AMD backspread
  • What did AMD do since putting on the trade?
  • A review of the FCX debit put spread
  • What did FCS do since putting on the trade?
  • Re-introducing the fig leaf with AMD
  • Using a LEAPS option
  • Setting up the trade
  • Picking strikes
  • What will it cost?
  • Why not just do a covered call?

Do you have questions that you want to have answered on an episode of Options Playbook Radio? Send them to Brian at theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio161.mp3
Category:financial podcast -- posted at: 9:12am CDT

Last week's episode looked at a backspread with calls. That strategy is on page 83 of the Options Playbook. This week, we will cover a debit put spread, which is on page 62.

In this session, Brian covers:

  • A review of last week's AMD backspread
  • Why look at FCX?
  • Why a long put spread?
  • Erring on the side of being too short or too long
  • Intrinsic value considerations
  • Picking strikes and expiration dates
  • Buying as much time premium as selling
Direct download: OptionsPlaybookRadio160.mp3
Category:financial podcast -- posted at: 2:22pm CDT

Today, we will explore back spread with calls in AMD (page 84). This is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

  • What are the benefits and risks of the back spread with calls?
  • What has happened since we put the trade on?
  • Setting up the trade.
  • What is the maximum risk? Reward?
  • What is the ideal scenario?
Direct download: Options_Playbook_159_final.mp3
Category:financial podcast -- posted at: 7:22am CDT